A! Perpetual inventory using LIFOBeginning inventory, purchases, and sales for Item 88-HX are as follows:July 1 Inventory84 units @ $18July 8 Sale67 unitsJuly 15 Purchase93 units @ $22July 27 Sale78 unitsAssuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 3a. Cost of goods sold on July 27b. Inventory on July 31636FeedbackCheck My Work2,922 X✓Next

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Description: A! Perpetual inventory using LIFOBeginning inventory, purchases, and sales for Item 88-HX are as follows:July 1 Inventory84 units @ $18July 8 Sale67 unitsJuly 15 Purchase93 units @ $22July 27 Sale78 unitsAssuming a perpetual inventory system and usin

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Perpetual inventory using LIFO
Beginning inventory, purchases, and sales for Item 88-HX are as follows:
July 1 Inventory
84 units @ $18
July 8 Sale
67 units
July 15 Purchase
93 units @ $22
July 27 Sale
78 units
Assuming a perpetual inventory system and using the last-in, first-out (LIFO) method, determine (a) the cost of goods sold on July 27 and (b) the inventory on July 3
a. Cost of goods sold on July 27
b. Inventory on July 31
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The cost of goods sold is a measure of the "direct cost" associated with producing any goods or services (COGS). It covers material expenses, direct labor costs, and direct manufacturing overheads and is directly correlated to revenue. As revenue increases, more resources are required to produce the products or services. COGS is often the second item on the income statement after sales revenue.

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